Benefit Solutions

March 2002 Issue 1

Berkley Risk Services of Colorado

Berkley Risk Services of Colorado is a division of the W. R. Berkley Corporation headquartered in Greenwich, CT. The medical, disability, and life department is staffed by Paul T. White, Leslie Parker-Wallace, Lisa Rogers and Heather Cantrall. We specialize in life, disability, group insurance (both fully insured and partially self-insured), Medical Savings Accounts (MSA), Long Term Care, group disability and 401k plans.

The Colorado office is the Administrator for The Dentist's Professional Liability Trust

We also provide Workers' Compensation, Business Owner's Policies, Home & Auto and Employment Practices Liability.


Aetna Leaves Small Group Market

Aetna Insurance Company has notified the Colorado Division of Insurance of their intent to withdraw from the Small Group Market (group sizes of 2-50) effective May 31, 2002.
If your business is between a group size of 2 to 50 employees and you are currently insured with Aetna, please call us right away so that we can assist you in moving your group medical insurance to another carrier.


Understanding Increasing health Care Costs

As an employer, you deserve to know why your rates may be increasing. Many factors are currently contributing to the rising health care costs. Below are some of the top reasons:


Short Term Medical Policies If you are currently between jobs, no longer eligible as a dependent on your parent's policy, or waiting for group coverage you may be eligible for Short Term Medical coverage. Short Term medical coverage is a temporary medical policy used for catastrophic coverage only. It does not cover well-care or pregnancy but it is very inexpensive and might be just what you need to get you covered until other, more extensive coverage becomes effective.

Example: $500 deductible, 80/20 plan
for 6 months

25 year old single male: $296.00
35 year old female single: $518.00
40 year old male single: $499.50

Call us if you have a need for Short Term Coverage!


MSA's Not So Complicated

Medical Savings Accounts (MSAs) give new options in health care. An MSA is a savings account that works in conjunction with a qualified, high deductible health plan. MSAs are available to small business owners, the self employed, and employees of small business. An MSA allows the insured to pay for qualified medical expenses with pre-tax dollars. Contribution amounts are determined by the federal government and predicated upon the deductible amount. However, contributions are tax deductible, earned income is tax deferred and unlike a flexible spending account, MSAs are not use it or lose it. Funds remaining in the account carry over and continue to earn interest. An MSA compatible insurance policy is a catastrophic medical plan with no first dollar benefits. Only expenses covered by the insurance can be credited towards the policy deductible; however, the MSA money can be withdrawn and used for ANY qualified health expense such as dental or vision. The theory behind the MSA is simple: purchase a catastrophic policy which will be less expensive


Qualified Sick Pay Plans

All firms employing one or more persons: When one of your key persons becomes disabled you will probably want to continue at least part of his or her income for some limited period of time.

Did you know that the law says you cannot deduct such payments as a tax-deductible business expense unless you first establish a Qualified Sick Pay Plan (pursuant to Section 105 of the Internal Revenue Code) before the person becomes disabled?

Adopting a Qualified Sick Pay Plan does not require the purchase of any insurance. Call us for a two-minute explanation.

"The best place to succeed is where you are with what you have"
-Charles M. Schwab


Are You Paying Too Much For Your Term Life?

If you haven't reviewed the cost of your life insurance within the past several years, it may be time to do so. We offer plans that include guaranteed premium for 10, 15, 20, & 30 years. We also offer quotes from several carriers and programs that waive the policy fee on the second policy.

Premium Example:
Male, Non-Smoker, Preferred Plus Rate, $250,000 Benefit, annual premium:
Age 10 yr Term 20 yr Term
30 117.50 172.50
40 140.00 227.50
50 292.50 585.00
60 772.50 1445.00

Female, Non-Smoker, Preferred Plus Rate, $250,000 Benefit, annual premium:
Age 10 yr Term 20 yr Term
30 105.00 150.00
40 125.00 192.50
50 247.50 400.00
60 502.50 955.00

Please call for a no obligation, customized quote.

Wht is Precertification

Many times a medical policy requires "Precertification" of a claim before the insured can obtain treatment. Precertification is a process in which you (the insured) or your provider (your doctor) calls the insurance company to verify that a procedure is medically necessary according to your plan or is being provided in the most appropriate setting. Certain procedures must be pre-certified including inpatient admissions, outpatient surgeries, MRIs, CAT Scans, any invasive diagnostic procedure, etc.

"Most people do only what they are required to do but successful people do a little more."

-Anonymous


Voluntary Benefits

No employer contributions required!

Discover how employers (large and small) are enhancing their Employee Benefits packages to attract and retain talented employees at no additional cost to the employer. Let Berkley Risk Services assist you in customizing solutions for your unique needs.

Benefits can be made available for part-time employees


Unauthorized Insurers On The Rise

The following is an excerpt from the Winter 2002 issue of the Colorado Regulator, a newsletter published by the Colorado Division of Insurance

"The Colorado Division of Insurance is on a mission. DOI wants to let all consumers and producers in the state know that the number of unauthorized insurers is on the rise. It=s not just happening in Colorado, but nationally."

"DOI regulators know of at least 200 consumers who have purchased unauthorized health coverage through one or more entities or individuals. Most of the unauthorized policies were sold to Colorado employers who thought that they were doing the right thing for their business."

"Insurance Commissioner, William J. Kirven, II says, >The unlicensed entities are luring employers with low rates for health insurance coverage, but what they are really offering is a false sense of security"

"The insurance industry is highly regulated, requiring that both companies and producer be licensed in each state where they conduct the business of insurance, but there are companies and individuals ignoring the rules. Recently, Commissioner Kirven ordered 20 entities and 10 individuals to stop issuing unauthorized health insurance policies in Colorado and to continue processing health claims on unauthorized health insurance business that they have sold."

"Per Kirven, 'Unlicensed entities are not regulated, may not be financially sound, and are not required to guarantee payment of claims if their company goes bankrupt. Unauthorized policies issued by these entities are not covered by a state guaranty fund, and therefore, do not offer any protection to consumers who purchase these policies.'"

For more information or a list of the companies that have been issued a Cease and Desist Order, please log onto: www.dora.state.co.us/insurance/index.htm


BERKLEY RISK SERVICES OF COLORADO
1873 S. BELLAIRE ST., SUITE 1010
DENVER CO 80222

Website

PHONE NUMBERS:

  • Paul T White:
    Self-Funded, Large Group
    303/357-2603
    877/502-0103
E-MAIL: pwhite@berkleyrisk.com
  • Joe DeRosa
    303/357-2611
    877/502-0111
E-MAIL: jderosa@berkleyrisk.com
  • Lisa Rogers:
    Small Group, Life, Disability
    303/357-2605
    877/502-0105
E-MAIL: lmrogers@berkleyrisk.com
  • Donna Jaramillo
    Benefits Department Administrative Assistant
    303/357-2615
    877/502-0115
E-MAIL: djaramillo@berkleyrisk.com

  • MAIN NUMBER: 303/357-2600
  • TOLL FREE 877/502-0100
  • FAX NUMBER: 303/357-2626